In the current unjust Socio-Economic System, maximizing shareholder value at all costs is the motto of most corporations which creates impoverished societies. There is growing income inequality in the world with some CEOs (some developed Countries) getting 300 times more salaries than the minimum paid worker in the same company! How can it be justified, morally, ethically or from a human rights point of view?
Most multinational corporations reduce their expenses by shifting the production offshore to countries of the Global South where cheap labor and low government regulation exists. When corporations avoid paying their fair share of taxes, governments around the globe are forced to raise rates for other types of taxes (such as sales taxes) and reduce investments in public services. All this comes at a time when people worldwide are struggling with reduced purchasing power. As a result, mounting corporate riches based on cheap labor and relentless tax dodging reinforce ballooning public and private debts. An added burden to the citizens particularly those living in the margins.
Corporations amassing wealth, usually reinvest in financial markets causing unemployment, rising debt and inequality. These situations force governments to practice austerity measures- cutting the social service which is one of the basic duties of the government to their citizens, the right holders.
Is there a way out ?
Yes, first and foremost governments must regulate the companies to pay their faire share of taxes. There must be a living wage in place for the workers and encourage the corporations to invest in productive rather than financial markets and speculations. CEOs receiving huge salaries should follow their corporate social responsibility to their fellow human beings.
A balanced and sustainable economy ultimately benefits, the people/societies as well as the corporations. When all able bodied persons including the youth are employed there will be less violence in the world and more safety and security particularly for women and girls. Multinational Corporations have a great role to play for the lasting peace and prosperity for all in the world.
Now is the time to act if the world wants to achieve the universal 2030 agenda and the Sustainable Development Goals. After all humans have only one chance to live on this beautiful planet!